3 Page 3 of 53 Date: 2/8/2013 Time: 04:40 PM Report ID: Property: Jacksonville FL Customer: Jacksonville Krystals Inspection Comment Key or Definitions Real Estate Professional: The following definitions of comment descriptions represent this inspection report. All comments by the inspector should be considered before purchasing this building. Any recommendations by the inspector to repair or replace suggests a second opinion or further inspection by a qualified contractor. All costs associated with further inspection fees and repair or replacement of item, component or unit should be considered before you purchase the property. (IN) = I visually observed the item, component or unit and if no other comments were made then it appeared to be functioning as intended allowing for normal wear and tear. Not (NI)= I did not inspect this item, component or unit and made no representations of whether or not it was functioning as intended and will state a reason for not inspecting. (RR) = The item, component or unit is not functioning as intended, or needs further inspection by a qualified contractor. Items, components or units that can be repaired to satisfactory condition may not need replacement. Type of building: Commercial - Restaurant Approximate age of building: Information not provided. I'd estimate at least 25+ years old Temperature: Between degrees Weather: Mostly clear

4 Page 4 of General Building and Site Information Items 1.0 Basic Information Hello Kari, Thank you for allowing me to inspect your future building. During the time you own the building you may call me anytime for information about anything in this report, or anything else you need to know or understand. This Inspection Report will be uploaded to my web server for five years after I it to you, the report can be forwarded to anyone by simply forwarding the sent to view the report. If you should loose the simply call or me, I will send the report again. If you have any questions after you move in do not hesitate to call me, any further help with anything regarding the building is always free. Thank you, Ray Thoroman Superior Home Inspections & South East Building Consultants 1.1 Purpose and Scope You have contracted with us to through verbal communication and (s) to perform an inspection in accordance with ASTM industry standards for the commercial inspection profession. This is different from our technically exhaustive inspection which takes several days to complete, involves the use of specialized instruments, the dismantling of equipment, video scanning, destructive testing and laboratory analysis of possible contaminates. Our purpose is to identify defects or adverse conditions that need repair or replacement, are safety concerns or may lead to costs that would significantly affect your evaluation of the property at the time of this inspection. The purpose of the Inspection is to document in a narrative format the condition of the building at the time of the inspection. The inspection is a visual snapshot in time regarding the condition of the systems and components of the building at the time of the inspection and is not a warranty nor an insurance policy, but that should not deter you purchasing such a policy. The building has extensive deferred maintenance, as with all building systems, components, items, etc; need to be maintained properly though the years. We do not document items which are cosmetic in nature or would be apparent to the average person, pictures are placed in the report as a courtesy to help you understand the reason for the narrative. There is an summary at the end of this report which you could use as a check-list if needed. Please read the entire report.

5 Page 5 of Exterior Items 2.0 Wall Cladding Flashing and Trim (1) Building metal cladding had several small rusting spots and peeling/flaking paint at multiple areas. Caulking at seams was also cracking/failing at several sections. Recommend repair issues by qualified contractor.

16 Page 16 of Item 5(Picture) (2) Parking lot business signage at rear north side had evidence of significant rusting and deterioration at bottom steel beams. Significant deterioration also noted at top of sign. Due to amount of deterioration, recommend evaluate by structural engineer, repair/replace by qualified contractor.significant repairs or replacement of this signage is likely.

19 Page 19 of Roofing, Roof Structure, and Attic Items 3.0 Roof Coverings There is a single ply roof material which appears to be PVC material. Covering had wear/aging, had multiple repairs/patches and appears to be nearing the end of its expected useful life. Older single ply material that is past its expected useful life was installed at edges or section around parapet wall where it meets metal flashing cap. Standing water (ponding) at several areas, which indicates poor drainage. Recommend evaluate roof by qualified roof contractor. Recommend budget on replacement. 3.0 Item 1(Picture) 3.0 Item 2(Picture) 3.0 Item 3(Picture) 3.0 Item 4(Picture)

24 Page 24 of Plumbing System for Building Items 5.0 Plumbing Drain, Waste and Vent Systems 5.1 Plumbing Water Supply and Distribution Systems and Fixtures Water supply piping insulation was aged/deterioration or missing at several areas rear storage building, above ceiling where visible from rear storage building at exterior of north side of building at water heater. Also evidence of icing and leaking at cooler/freezer water supply lines above ceiling where visible from rear storage room. Recommend evaluate plumbing system by licensed plumber and repair issues as needed.

38 Page 38 of Electrical System for Building Items 9.0 Service Entrance Conductors 9.1 Service and Grounding Equipment, Main Overcurrent Device, Main and Distribution Panels (1) Main electrical meter metal box had rusting at bottom corner. Recommend contacting electrical utility service provider for repairs. 9.1 Item 1(Picture) (2) Electrical system was an 600 amp three phase 208 volt. There were two main electrical service panels interior. Multiple defective issues were noted such as: 1. Panels, sub-panels and breakers were improperly, poorly or not labeled/identified. This made it near possible to evaluate main or branch circuit breakers. 2. Double tapping at breakers. 3. Missing dead front panel screws. 4. Panel safety locks not working. 5. Rear north side main panel (near rear office) had top half of breakers that did not work. 6. Main lugs at bus bar were stripped out or burnt/damaged. Due to multiple safety issues and condition of all electrical wiring noted, recommend further evaluation by licensed electrician. Recommend budget on extensive electrical repairs.

42 Page 42 of Item 14(Picture) 9.2 Brand Circuit Conductors, Overcurrent Devices and Compatibility of Their Amperage and Voltage 9.3 Connected Devices and Fixtures (Observed from a representative number operation of ceiling fans, lighting fixtures, switches and receptacles located inside and exterior (1) Exposed electrical wiring noted at roof. Some wiring was old or not in use, other wiring was in use or live. Recommend evaluate by licensed electrician. 9.3 Item 1(Picture) 9.3 Item 2(Picture) (2) Evidence of exposed electrical wiring, improper wiring, open junction boxes, exposed wire at conduit tubing were noted at rear storage building, above office at ceiling where visible from rear storage building and inside building at dinning room/kitchen areas. Recommend repair issues by licensed electrician.

48 Page 48 of 53 General Summary South East Building Consultants Inspecting Jacksonville FL and entire South East Customer Jacksonville Address Jacksonville FL The following items or discoveries indicate that these systems or components do not function as intended or adversely affects the habitability of the dwelling; or warrants further investigation by a specialist, or requires subsequent observation. This summary shall not contain recommendations for routine upkeep of a system or component to keep it in proper functioning condition or recommendations to upgrade or enhance the function or efficiency of the building. This Summary is not the entire report. The complete report may include additional information of concern to the customer. It is recommended that the customer read the complete report. 2. Exterior 2.0 Wall Cladding Flashing and Trim (1) Building metal cladding had several small rusting spots and peeling/flaking paint at multiple areas. Caulking at seams was also cracking/failing at several sections. Recommend repair issues by qualified contractor. (2) Holes/gaps at rear storage building. Recommend sealing to prevent rodent/pest entry. 2.3 Steps, Sidewalks, Areaways, Appurtenances, Patio & Patio furniture and Applicable Railings (1) Rear storage unit at north west corner (where trash container and grease tank) had evidence of rusting and deterioration at both the metal roof and metal entry doors. Recommend repair damage by qualified contractor. I was not able to access the inside of this building. (2) Sidewalks and patios had evidence of cracks at several areas. Recommend repair by qualified contractor.

49 Page 49 of Exterior (3) Patio furniture was either aged, not properly secured/supported or had rusted/deteriorated metal posts/bracing and tables. Recommend repair/replace by qualified contractor. (4) Metal guard railing at west side (drive-thru) was loose. Sidewalk concrete was cracked/damaged at railing. Recommend repair issues by qualified contractor. (5) Drive-thru awning had rust/deterioration at corner of main supports. Recommend repair by qualified contractor. 2.4 Driveway, Parking Lot Multiple areas of deterioration and cracking noted at asphalt parking lot. North West rear of parking lot had extensive cracking/damage due to tree roots. Concrete curbs and parking space barriers. Recommend repair/repair areas by qualified asphalt contractor. 2.6 Eaves, Soffits and Fascias Soffit had several loose pieces and gaps. Recommend repair by qualified contractor. 2.7 Parking Lot Light Poles; Parking Lot Business Signage (1) Parking lot light poles had evidence of general aging including rusting and deterioration where metal structure attaches to concrete base. Recommend evaluate by structural engineer or contractor qualified to make repairs. Also evidence of exposed electrical wiring or missing access panel covers. Recommend evaluate by licensed electrician and repair as needed. (2) Parking lot business signage at rear north side had evidence of significant rusting and deterioration at bottom steel beams. Significant deterioration also noted at top of sign. Due to amount of deterioration, recommend evaluate by structural engineer, repair/replace by qualified contractor.significant repairs or replacement of this signage is likely. (3) South side parking lot business sign light did not work at night. Recommend repair by qualified contractor. 3. Roofing, Roof Structure, and Attic 3.0 Roof Coverings There is a single ply roof material which appears to be PVC material. Covering had wear/aging, had multiple repairs/patches and appears to be nearing the end of its expected useful life. Older single ply material that is past its expected useful life was installed at edges or section around parapet wall where it meets metal flashing cap. Standing water (ponding) at several areas, which indicates poor drainage. Recommend evaluate roof by qualified roof contractor. Recommend budget on replacement. 3.1 Roof Flashings Seams/sealant at roof parapet walls was failing/cracked. Recommend repair by qualified roof contractor.

50 Page 50 of Plumbing System for Building 5.1 Plumbing Water Supply and Distribution Systems and Fixtures Water supply piping insulation was aged/deterioration or missing at several areas rear storage building, above ceiling where visible from rear storage building at exterior of north side of building at water heater. Also evidence of icing and leaking at cooler/freezer water supply lines above ceiling where visible from rear storage room. Recommend evaluate plumbing system by licensed plumber and repair issues as needed. 5.2 Hot Water Systems, Controls, Flues and Vents (1) Tank-less water heater had multiple defective and safety issues noted such as; improper installation of T/P valve (missing piping), improper electrical wiring, improper electrical wiring connectors, connections and conduit, water piping not insulated. Recommend repair by both licensed electrician and licensed plumber. (2) Old gas water heater flue pipe was still present at rear storage room. I recommend removing or capping it to prevent leaks into the building. 5.5 Main Fuel Shut Off (Describe Location) (2) Main gas meter had damage at top. Recommend repair. 6. Offices / Dinning 6.0 Ceilings (1) Improper framing noted at ceiling for rear office where visible from the rear storage building. Recommend repair issues by qualified contractor. (2) Ceiling panels and metal track had evidence of condensation or water damage/rusting and staining at multiple areas. Recommend replacing damaged components as needed by qualified contractor. (3) Exposed/improper electrical wiring noted at ceiling light fixture in southeast corner of building. Recommend repair by licensed electrician. 6.2 Floors A few cracked floor/base tiles noted at dinning room. Recommend repair. 7. Kitchen 7.1 Walls

51 Page 51 of Kitchen (1) General rust/deterioration at kitchen walls/coolers. Repairs are needed at bottom in several areas. (2) Southwest corner storage closet had evidence of standing stagnate water on floor. This is causing surface mold growth at walls and wood shelving. Recommend clean/remediate by qualified person. 7.2 Floors Cracked or loose tiles at kitchen floor. Recommend repair. 7.5 Plumbing Supply, Fixtures (1) Kitchen sink faucet leaked. Recommend repair by qualified plumber. (2) Utility wash station faucet leaked. Recommend repair by qualified plumber. (3) Three bin wash sink water supply lines were leaking underneath. Recommend repair by qualified plumber. 7.7 Outlets and Wall Switches Kitchen receptacle right side of cooking equipment was damaged. At least two switch plate covers were cracked/damaged. Recommend repair by licensed electrician. 9. Electrical System for Building 9.1 Service and Grounding Equipment, Main Overcurrent Device, Main and Distribution Panels (2) Electrical system was an 600 amp three phase 208 volt. There were two main electrical service panels interior. Multiple defective issues were noted such as: 1. Panels, sub-panels and breakers were improperly, poorly or not labeled/identified. This made it near possible to evaluate main or branch circuit breakers. 2. Double tapping at breakers. 3. Missing dead front panel screws. 4. Panel safety locks not working. 5. Rear north side main panel (near rear office) had top half of breakers that did not work. 6. Main lugs at bus bar were stripped out or burnt/damaged. Due to multiple safety issues and condition of all electrical wiring noted, recommend further evaluation by licensed electrician. Recommend budget on extensive electrical repairs. 9.3 Connected Devices and Fixtures (Observed from a representative number operation of ceiling fans, lighting fixtures, switches and receptacles located inside and exterior (1) Exposed electrical wiring noted at roof. Some wiring was old or not in use, other wiring was in use or live. Recommend evaluate by licensed electrician. (2) Evidence of exposed electrical wiring, improper wiring, open junction boxes, exposed wire at conduit tubing were noted at rear storage building, above office at ceiling where visible from rear storage building and inside building at dinning room/kitchen areas. Recommend repair issues by licensed electrician. (3) Missing switch plate cover at rear storage building. Light did not work either. 10. Heating / Cooling

52 Page 52 of Heating / Cooling 10.4 Distribution Systems (including fans, pumps, ducts and piping, with supports, insulation, air filters, registers, radiators, fan coil units and convectors) (1) HVAC unit air filters at roof and in office were dirty/clogged. Recommend service by licensed HVAC contractor. (2) Improper duct piping material and/or installation for the HVAC unit above office ceiling where visually accessible at rear storage room. Recommend repair by licensed HVAC contractor. building inspectors are not required to report on the following: Life expectancy of any component or system; The causes of the need for a repair; The methods, materials, and costs of corrections; The suitability of the property for any specialized use; Compliance or non-compliance with codes, ordinances, statutes, regulatory requirements or restrictions; The market value of the property or its marketability; The advisability or inadvisability of purchase of the property; Any component or system that was not observed; The presence or absence of pests such as wood damaging organisms, rodents, or insects; or Cosmetic items, underground items, or items not permanently installed. building inspectors are not required to: Offer warranties or guarantees of any kind; Calculate the strength, adequacy, or efficiency of any system or component; Enter any area or perform any procedure that may damage the property or its components or be dangerous to the building inspector or other persons; Operate any system or component that is shut down or otherwise inoperable; Operate any system or component that does not respond to normal operating controls; Disturb insulation, move personal items, panels, furniture, equipment, plant life, soil, snow, ice, or debris that obstructs access or visibility; Determine the presence or absence of any suspected adverse environmental condition or hazardous substance, including but not limited to mold, toxins, carcinogens, noise, contaminants in the building or in soil, water, and air; Determine the effectiveness of any system installed to control or remove suspected hazardous substances; Predict future condition, including but not limited to failure of components; Since this report is provided for the specific benefit of the customer(s), secondary readers of this information should hire a licensed inspector to perform an inspection to meet their specific needs and to obtain current information concerning this property. Prepared Using HomeGauge : Licensed To Ray Thoroman

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